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Dutch State publishes issuance calendar second quarter 2020 including additional funding due to corona

News item | 20-03-2020 | 10:05

The Dutch State Treasury Agency normally publishes its Quarterly outlook for Q2 at the end of Q1, including an economic and budgetary update and an issuance calendar. Given the extraordinary circumstances due to corona, the DSTA has decided to only publish the issuance calendar for Q2, by means of this press release. This issuance calendar includes an additional funding need. At the end of June, DSTA will publish its next Quartely outlook for Q3, as usual.

Due to the coronavirus outbreak, the Dutch government decided on 17 March 2020 to implement a series of unprecedented economic measures. The newly announced measures, billions of euros will be invested into the economy every month, for as long as necessary. The Dutch government has chosen to implement a massive and broad set of measures, aimed at protecting jobs and mitigating the impact on the economy. This will evidently impact the level of state debt. Nonetheless, due to the current state of public finances we are able to bear this.

As a result of the above mentioned measures, the government foresees an increased funding need. It is the DSTA’s standard policy to initially absorb changes in the funding need through the money market. The DSTA will do so through its regular set of money market instruments, such as Dutch Treasury Certificates (DTC’s), commercial paper and deposits. Traditionally, DTC auctions are held at the first and third Monday of every month. For the next quarter, it was decided to hold weekly DTC auctions. Besides the regular 3- and 6-month programmes, the DSTA has included the possibility to issue longer dated programmes this quarter as well. Any issuance of longer tenors will be done after consultation with Primary Dealers.

In addition, the DSTA will cover its funding need via capital markets issuances. It will do so next quarter through three reopenings of the new 10-year benchmark bond – the DSL 15 July 2030. Also three tap auctions are foreseen regarding DSLs which are still to be determined. So far, these capital market issuances still fall within the range of € 21 to € 26 billion of capital market funding in 2020, as announced in the Outlook 2020. The DSTA will present an update of the funding need for 2020 at the end of June, in its regular Quarterly outlook for Q3, or sooner through a press release if necessary.

The table below presents the Dutch State Loan (DSL) issuances for the second quarter of 2020. The quarter will start on 14 April with the reopening of the DSL 15 July 2030. Reopenings for this DSL are also scheduled for 12 May and 9 June. The target volume for each of these three reopenings is € 1 to € 2 billion. Furthermore, three existing DSLs will be tapped at different points along the curve, which are still to be determined. Tapping the green DSL 15 January 2020 also remains a possibility. The exact DSL and target volume will be announced six days prior to the auction, after consultation with Primary Dealers. As usual, auctions will be held on the second and fourth Tuesday of each month.

DSL-issuance calendar second quarter 2020

Auction Date

Details

Target volume (€ bn)

14 April

Reopening DSL 15 July 2030

1 - 2

28 April

Tap auction existing DSL*

t.b.d.

12 May

Reopening DSL 15 July 2030

1 - 2

26 May

Tap auction existing DSL*

t.b.d.

9 June

Reopening DSL 15 July 2030

1 - 2

23 June

Tap auction existing DSL*

t.b.d.

* Auction date, including maturity and target volume will be announced on the Wednesday prior to the auction date (t-6).

The table below presents the DTC issuances for the second quarter of 2020. This calendar includes twelve DTC auctions. Traditionally, auctions are held on Monday. This quarter, however, DTC auctions will be held on a weekly basis instead of every other week. In addition to the regular 3- and 6-month programmes, the possibility has been included this quarter to issue longer dated programmes. The size of the programmes will be determined based on the funding need and after consultation with Primary Dealers, where the DSTA remains committed to providing sufficient liquidity in all DTC-programmes. Auction details will be announced on the Wednesday prior to the Auction.

DTC-issuance calendar second quarter 2020

Auction date*

Settlement date

Shorter-dated programme

Longer-dated programme

6 April

8 April

29/09/2020

14 April

16 April

to be determined

20 April

22 April

29/06/2020

29/09/2020

28 April

30 April

to be determined

4 May

6 May

29/10/2020

11 May

13 May

to be determined

18 May

20 May

30/07/2020

29/10/2020

25 May

27 May

to be determined

2 June

4 June

27/11/2020

8 June

10 June

to be determined

15 June

17 June

28/08/2020

27/11/2020

22 June

24 June

to be determined

* Auction details will be announced on Wednesday prior to the auction (t-5).

** Maturit(y)(ies) to be determined after consultation with Primary Dealers.

In case of unforeseen conditions, the DSTA reserves the right to change the date of the auction.